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Major UK retailer cuts more than 1,200 jobs as high street chaos grows
The Somerset-headquartered shoe retailer has reported a revenue of £901.3m for 2024, down from the £994.5m it achieved in 2023.
Clarks, the Somerset-based shoe retailer, has slashed over 1,200 jobs following a near £100m plunge in sales during its most recent financial year. The company's revenue for 2024 was reported at £901.3m, a significant drop from the £994.5m it raked in during 2023.
Documents submitted to Companies House reveal that Clarks' workforce dwindled from 7,413 to 6,161 within a year, while it registered a pre-tax loss of £39.2m.
This latest shortfall follows a pre-tax loss of £39.8m in the preceding 12 months. The last time the chain posted a pre-tax profit was at the close of 2022, with a total of £35.9m for the 48 weeks, as reported by City AM.
In its most recent financial report, Clarks attributed a substantial portion of its losses to an impairment of £32.1m on right-of-use assets and store property plant and equipment.
The company stated its primary objective is "to return to sustainable sales growth combined with a cost-focused attitude to deliver healthy store profitability in 2025".
In April 2024 that Clarks' Chief Executive, Jon Ram, had stepped down after a two-year tenure. An interim executive committee is currently steering the ship at Clarks, as a new CEO has yet to be appointed.
In a statement approved by the board, it was noted: "2024 was a year of transition within the business, as internal and external factors created a variety of challenges."
The statement further highlighted the challenging global market conditions faced by the company.
"With a high number of major elections taking place in countries like the United States, United Kingdom, India, the European Union and several emerging markets, businesses and consumers faced uncertainty regarding potential shifts n trade policies, regulatory frameworks and fiscal strategies.
"This had a significant impact on the economy, driving volatility in financial markets, influencing investment decisions and shaping economic policies.
"Coming on the back of continuing major conflicts and inflationary pressures, this led to reduced consumer demand in 2024. "FY24 has therefore been a year of tradition for the Clarks Group with cost rationalisation and reduction to fix the foundations for our future.
"Significant changes have been made to the operations in the year to right size the overhead cost for the current business size, refocus the marketing approach, reposition the product assortment and set up the business for recovery and sustainable profitable growth in 2025."
Daily Star Sunday
The Somerset-headquartered shoe retailer has reported a revenue of £901.3m for 2024, down from the £994.5m it achieved in 2023.
Clarks, the Somerset-based shoe retailer, has slashed over 1,200 jobs following a near £100m plunge in sales during its most recent financial year. The company's revenue for 2024 was reported at £901.3m, a significant drop from the £994.5m it raked in during 2023.
Documents submitted to Companies House reveal that Clarks' workforce dwindled from 7,413 to 6,161 within a year, while it registered a pre-tax loss of £39.2m.
This latest shortfall follows a pre-tax loss of £39.8m in the preceding 12 months. The last time the chain posted a pre-tax profit was at the close of 2022, with a total of £35.9m for the 48 weeks, as reported by City AM.
In its most recent financial report, Clarks attributed a substantial portion of its losses to an impairment of £32.1m on right-of-use assets and store property plant and equipment.
The company stated its primary objective is "to return to sustainable sales growth combined with a cost-focused attitude to deliver healthy store profitability in 2025".
In April 2024 that Clarks' Chief Executive, Jon Ram, had stepped down after a two-year tenure. An interim executive committee is currently steering the ship at Clarks, as a new CEO has yet to be appointed.
In a statement approved by the board, it was noted: "2024 was a year of transition within the business, as internal and external factors created a variety of challenges."
The statement further highlighted the challenging global market conditions faced by the company.
"With a high number of major elections taking place in countries like the United States, United Kingdom, India, the European Union and several emerging markets, businesses and consumers faced uncertainty regarding potential shifts n trade policies, regulatory frameworks and fiscal strategies.
"This had a significant impact on the economy, driving volatility in financial markets, influencing investment decisions and shaping economic policies.
"Coming on the back of continuing major conflicts and inflationary pressures, this led to reduced consumer demand in 2024. "FY24 has therefore been a year of tradition for the Clarks Group with cost rationalisation and reduction to fix the foundations for our future.
"Significant changes have been made to the operations in the year to right size the overhead cost for the current business size, refocus the marketing approach, reposition the product assortment and set up the business for recovery and sustainable profitable growth in 2025."
Daily Star Sunday